Instructions for Schedule C (Form 1040) - 2024 - Profit or Loss From Business

Sep 19, 2026

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Instructions for Schedule C (Form 1040) (2024) explain how sole proprietors report profit or loss from a business or profession. The guidance defines what qualifies as a business, distinguishes nonbusiness activity reporting, and covers statutory employee wages, certain joint venture income and deductions, and amounts from specific Form 1099s. It also highlights potential state and local requirements and outlines key updates, reminders, and related schedules and forms.

LanguageEnglish

CategoryForms

FormatPDF

Pages21

Reading Time7 min

AccessFree to download

Profit or Loss From Business

Future Developments

What's New

Reminders

General Instructions

Other Schedules and Forms You May Have To File

| 2024 Instructions for Schedule C | | | --- | --- | | Profit or Loss From Business | Use Schedule C (Form 1040) to report income or (loss) from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity. For example, a sporadic activity, a not-for-profit activity, or a hobby does not qualify as a business. To report income from a nonbusiness activity, see the instructions for Schedule 1 (Form 1040), line 8j.
Also, use Schedule C to report (a) wages and expenses you had as a statutory employee; (b) income and deductions of certain qualified joint ventures; and (c) certain amounts shown on a Form 1099, such as Form 1099-MISC, Form 1099-NEC, and Form 1099-K. See the instructions on your Form 1099 for more information about what to report on Schedule C.
You may be subject to state and local taxes and other requirements such as business licenses and fees. Check with your state and local governments for more information. | Section references are to the Internal Revenue Code unless otherwise noted. | Future Developments
For the latest information about developments related to Schedule C and its instructions, such as legislation enacted after they were published, [go to](go to IRS.gov/)[ ](go to IRS.gov/)[IRS.gov/](go to IRS.gov/)[ ](go to IRS.gov/)ScheduleC. | | --- | | What's New
Form 1040-SS filers and business use of home. For 2024, taxpayers who file Form 1040-SS and claim a deduction for business use of home will report the expense on Schedule C (Form 1040) . Filers will use Form 8829, Expenses for Business Use of Your Home, if applicable, to figure the deduction and report the amount on Schedule C, line 30. Standard mileage rate. The business standard mileage rate for 2024 is 67 cents per mile.
Bonus depreciation. The bonus depreciation deduction under section 168(k) continues its phaseout in 2024 with a reduction of the applicable limit from 80% to 60% . | Reminders Redesigned Form 1040-SS. Schedule C (Form 1040) is available to be filed with Form 1040-SS, if applicable. It replaces Form 1040-SS, Part IV. For additional information, see the Instructions for Form 1040-SS. Business meals deduction. The business meals deduction is 50% . Reporting nontaxable Medicaid waiver payments. Certain Medicaid waiver payments that are reported to you on Form 1099-MISC or Form 1099-NEC may be nontaxable. For information on how to report those payments on Schedule C, see Medicaid waiver payments, later. Gig economy tax center. The gig (or on-demand, sharing, or access) economy refers to an activity where people earn income providing on-demand work, services, or goods. Go [to](to IRS.gov/Gig to)[ ](to IRS.gov/Gig to)[IRS.gov/Gig](to IRS.gov/Gig to)[ to](to IRS.gov/Gig to)[ ](to IRS.gov/Gig to)get more information about the tax consequences of participating in the gig economy. Excess business loss limitation. If you report a loss on line 31 of your Schedule C (Form 1040), you may be subject to a business loss limitation. The disallowed loss resulting from the limitation will not be reflected on line 31 of your Schedule C. Instead, use Form 461 to determine the amount of your excess business loss, which will be included as income on Schedule 1 (Form 1040), line 8p. Any disallowed loss resulting from this limitation will be treated as anet operating loss that must be carried forward and deducted in a subsequent year. See Form 461 and its instructions for details on the excess business loss limitation. Small Business and Self-Employed (SB/SE) Tax Center. Do you need help with a tax issue or preparing your return, or do you need a free publication or form? SB/SE serves taxpayers who file Form 1040, 1040-SR, Schedules C, E, F, or Form 2106, as well as small business taxpayers with assets under $10 million. For additio

FAQs

What activities qualify as a business for Schedule C reporting?

An activity qualifies if the primary purpose is income or profit and you are involved with continuity and regularity. Sporadic activities, not-for-profit activities, or hobbies do not qualify as a business.

How do 2024 home business deductions flow to Schedule C?

Taxpayers who claim a deduction for business use of home report the expense on Schedule C. They use Form 8829, and the figured deduction amount is reported on Schedule C, line 30, when applicable.

What are the 2024 business standard mileage rate and bonus depreciation changes?

The business standard mileage rate for 2024 is 67 cents per mile. Bonus depreciation continues phasing out in 2024 under section 168(k), reducing the applicable limit from 80% to 60%.

Sep 19, 2026

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